Did you get put off by the competition when you started?

[Perservere]

So when you first started out, you must have done your research. Were you put off by the saturated market or a couple of companies that are already doing what you're doing?

I think of ideas or get ideas from others but every time I look into it, it seems to be have been done already. I do find that rather demotivating (gonna get shot in the face by saying that) Although I know that doesn't mean you can't have a piece of the large cake.

How do you overlook that and beat the competition who are already in it?

 

[BHDS]

How do you overlook that and beat the competition who are already in it?

Do it better than them!

It's a bit of a dated concept now for some, but look at your USPs. What differentiates you from the other businesses? What is it that you deliver to a potential client that gives you the edge over your competitors?

 

[LowPrices.uk]

I think you need to think about the amount of investment required to compete. In general though I don't get put off by competitors.

 

[ThePublisher]

If there are others doing what you want to do and doing it successfully it shows there is a market for the product or service. Many people try and start businesses where there appears to be no visible competition, it can often be because there's no market for what they are trying to sell.

Our local high street has 5 hairdressers and 3 barbers, 7 restaurants/cafes, 2 pubs, 4 estate agents etc etc and it's a small town.

If you're only going try to set up a business where there is no competition, you'll spend a long time looking for somthing and when you find it there may be no market for it.

 

[AllUpHere]

As the publisher says, competition is a good indication that there is a market for what you intend to sell.

Contrary to popular belief, its actually much easier and cheaper to market a business that has competition.

 

[Perservere]

Interesting responses and never thought of it like that. Thanks a bunch!

 

[Blood Lust]

So when you first started out, you must have done your research. Were you put off by the saturated market or a couple of companies that are already doing what you're doing?

I think of ideas or get ideas from others but every time I look into it, it seems to be have been done already. I do find that rather demotivating (gonna get shot in the face by saying that) Although I know that doesn't mean you can't have a piece of the large cake.

How do you overlook that and beat the competition who are already in it?

It all comes down to what your business sells, what your market wants and if any innovation is occurring. If innovation isn't present then there's 5 rivals:
1. Cost Leader - He has the largest economy of scale saving from having the largest production capacity, best bulk discounts, etc.
2. Cost Focuser - He cannot compete on cost broadly. So he streamlines his processes allowing him to be the cheapest when targeting a niche segment.
3 Broad Differentiator - He targets a broad range of market segments by having the reputation as the best quality provider, top brand name, etc.
4. Focused Differentiator - He cannot compete against the big name for offering quality. So he develops his name by offering higher quality products for a niche segment.
5. Integrated Leader - He sits somewhere between them all.

Your market determines what customers want so you will know which of the above are relevant. Assess your rivals to determine what number they are. You then pick one of the remaining numbers (if the market will want it).

If they are all taken, if no openings exist which customers will want and you don't have some fancy new innovation to steal one of their market shares then you should divest. Stay away, try a different type of business.

 

[Nosgaming uk]

Remember to be adaptable though, as you may have done your research in what your competitors are currently doing but if there smart they will no doubt change things up as a result of you entering there market.

 

[Paul_Rosser]

There wasn't really much competition when we started, that's changing a bit now but still have a very untapped market. But we approach it in a different way to others and seems to be working very well.

As BHDS said you need to look at the way you intend to be different from the competition and how you are going to inform your potential customers of this, doesn't have to be anything major you just need to understand your target market and what the 5 most important things they want are and then deliver these every single time.

If you do it right then you won't have any competition as whilst everyone else will be selling in the same way you will have created your own market based on consistent service delivery.

Although what your customers want changes so you need to make sure you keep adapting.

The service/product you are selling doesn't really matter and look at what others are doing but then try to find a better way of delivering it as that's where you will stand out.

There is a really good book called Becoming a category of one which explains it much better than I can and would recommend for any sized company.

 

[pjperez]

Yes, it is a completely normal feeling. One of my signature's business is in a fairly saturated market, but at the same time I believe it is a market with potential to change and grow.

My competition has millions invested and big dev teams, while we're bootstrapping.
I think we have better and more personal support and could adapt easier to change. A small boat changes direction quicker than a big one no inertia!

 

[Blood Lust]

Remember to be adaptable though, as you may have done your research in what your competitors are currently doing but if there smart they will no doubt change things up as a result of you entering there market.

Yes, the issue of adaptability is important.

He should go for integrated leader if the pace of change is high in his market. The reason being is if becomes too specialised for cost leadership, cost focus, broad differentiation or differentiation focus he can lose his ability to adapt. Then if the market changes he cant cope. The middle of the road stance means he keeps his ability to adapt.

So the question is how much innovation or change exists in his market?

 

[Blood Lust]

Yes, the issue of adaptability is important.

He should go for integrated leader if the pace of change is high in his market. The reason being is if becomes too specialised for cost leadership, cost focus, broad differentiation or differentiation focus he can lose his ability to adapt. Then if the market changes he cant cope. The middle of the road stance means he keeps his ability to adapt.

So the question is how much innovation or how often does change exists in his market?